Exclusive interview with Marco Streng, co-founder and CEO of GENESIS MINING, special for ZNAYPRAVDU.COM
Znaypravdu: Genesis Mining is one of the leading Bitcoin mining company in the world with a significant presence in Eastern Europe. Did you choose this region by some special criteria as one of the most comfortable for your company activity or your interest has strategic nature, because there is a lot if Bitcoin enthusiast in the countries of Eastern Europe, actively involved in global development of Blockchain technology?
Marco Streng: Many of our staff are from Eastern Europe so we definitely focus on that market; it is one that we understand pretty well. There is a lot interest in that area as well due to the geopolitical and economic events taking place. We find it to be a very appealing market for the Bitcoin industry especially because a lot of people from Eastern Europe are very interested in blockchain technology.
Znaypravdu: The global business of Bіtcoin mining is getting much more similar to the ordinary business: the leaders of the industry appear, successful first blockchain IPO, competition is growing among the manufacturers of equipment and distributors of services for Bitcoin mining. Don’t you see in it ( don’t you think it’s) the tendency of conversion of Bіtcoin mining to the ordinary business, where money are at the first place? Wouldn’t it become the betrayal of ideas that were laid by creators of Bitcoin?
Marco Streng: Money is certainly becoming a major factor in the mining industry, but Bitcoin’s nature is decentralized and it will always remain that way. I think Bitcoin mining in particular is an industry where it is critical to stay on top. Only the ones offering the best services survive and if you look at the history in this market you can see what I mean. We are very proud to be one of the first cloudmining companies and even more that we have established ourselves as the biggest one and the market leader by now.
Znaypravdu: Taking into account the growing complexity and cost of Bitcoin mining, what prospects do you see in the nearest years? Does the global market of Bitcoin mining get less accessible for small mining companies or do they still have the chance to get their own piece of pie?
Marco Streng: I think the natural shift will be that the smaller companies eventually get pushed out or form partnerships together. Mostly, if people want to participate in mining it will likely be through services such as cloud mining as opposed to setting up their own operations in their basements or garages.
Znaypravdu: Not a lot time ago Genesis Mining has announced the start of production of the new generation of ASIC-processors. How do you see the future development of your own line of ASIC-processors in the conditions of growing competition between the manufacturers?
Marco Streng: The market changes quickly, much faster than any other market out there in my opinion. But we understand that and use it for our advantage. We welcome competition and believe it’s healthy and necessary for the ecosystem to grow.
Znaypravdu: Can you give your forecast of the further spread Bіtcoin in the world and the following development the Blockchain technology? What factors can influence on it the most?
Marco Streng: The drive of innovation in Bitcoin and Blockchain Technology is huge. This can be especially seen by looking at the growth of companies that are building services on top of Bitcoin which also more and more increase the adoption because it generates more use cases and more convenience for using it. I think it is those services that have most impact on the growth of the techonology.
Znaypravdu: During the last year the rate of Bitcoin against the dollar has decreased significantly. In your opinion, what factors can affect the future growth of the Bіtcoin rate?
Marco Streng: The price of Bitcoin mainly gets increased if the demand for it grows. In my opinion the most important thing for increasing the demand for Bitcoin is developing more use cases based on it and increasing main stream adoption. One component certainly is also increasing the convenience of using it since it is still very technical.
Znaypravdu: What prospects do you see in the development of electronic commerce using the Bіtcoin? Big companies such as Microsoft are using Bitcoin as payment currency, but part of payments with Bitcoin still very low in comparison with payments in fiat currency.
Marco Streng: Many of them did announce accepting Bitcoin likely as a PR stunt but more importantly to begin testing the waters. Of course, they didn’t do it with the expectation that they would immediately have significant income from Bitcoin but companies such as Overstock are seeing significant portions of their business coming from Bitcoin when you consider how young Bitcoin really is. Many people truly forget that Bitcoin is still in it’s infancy and still of course has a long way to go. 6 years ago, Bitcoin didn’t exist. Now it has a multi-billiondollar market cap with multi-billion dollar companies researching it’s potential. This I think is more significant than transaction volume when you look at the big picture.
Znaypravdu: What`s your opinion about interest from Wall Street and international financial groups to Blockchain technology and it`s using in financial services, despite the claims of certain influential people about dangers of this technology for the global financial system?
Marco Streng: There are always naysayers, anytime a new technology presents itself and of course Bitcoin is no different. I wrote a blog post here where I drew on the comparisons from Bitcoin and the early Internet and the now ridiculous claims many people made. This is common and should be expected for any new and disruptive technology such as Bitcoin.
Znaypravdu: How do you assess the ongoing efforts to financial regulators of individual countries to ban or control the use of Bitcoin? You don’t see this as a threat to further development of Bitcoin and Blokchain technology?
Marco Streng: Regulators in my opinion will begin to slowly see the importance of not slowing down innovation. New York was the first to pass the BitLicense and they have seen over 20 companies leave the state, including us at Genesis Mining. Stifling regulation is dangerous and regulators are now beginning to understand that. You can read another post here where we compared to the current BitLicense with the infamous Red Flag Acts in the UK during the 1800s.
Znaypravdu: Genesis Mining is a public company. Everyone can get acquainted with the team of Genesis Mining simply by going on the your official website. It is clear that many powerful international corporations and financial regulators see a threat in Blokchain technology and cryptocurrencies. Is your company suffers from such negative influence of this factors?
Marco Streng: They may see it as a threat but in the end, there is nothing they can do to stop Bitcoin. Bitcoin doesn’t have a warehouse with servers, no head quarters, and no CEO to arrest (despite media claims). So, we are not concerned with this aspect and we work very closely with our international team of lawyers to respect the laws of each country we operate in.
Znaypravdu: You have a lot of customers in Eastern Europe, particularly in Ukraine and Russia. In general, all the Bitcoin community with great interest follows the further development of Genesis Mining. What would you like to wish to all of us?
Marco Streng: I’d love to say thank you all of our customers for their trust and dedication to our service. I receive over 500 emails per day and I truly do read every one of them. I also read the comments in our articles of the blog and media sites which feature us. When we do our monthly webinar, we receive hundreds of messages from people simply saying “thank you” for the service we provide. We will continue to do what we can for all our customers in eastern europe and look forward to growing along side you in these truly exciting times.